If you've found your "dream home" but it needs a little TLC, no worries! There is a fantastic loan program that will allow you to purchase the home and build the cost of the renovations into the mortgage.
FREQUENTY ASKED QUESTIONS -- FHA 203k LOANS
What is the difference between a regular 203K and a streamline 203K?
- Streamline - between 5K and 35K with no structural changes to the property
- Regular - greater than 35K and / or structural changes to the property
Is the borrower allowed to perform the work to the home?
- Yes but very difficult to get approved and must be minor work or work that the borrower has a license to perform if it is major work.
Is the house appraised "As is" or with work completed?
- The house is appraised taking repairs / rehab into consideration of the value.
How long do you have to complete the work?
- Up to 6 months.
It the rate higher on a 203K than a regular FHA loan?
- Yes. Anywhere from .5% to 1% higher in rates.
Is it harder to qualify for a 203K than a regular FHA loan?
- It can be. But that can be compensated by the borrower's income, credit & assets.
Are the 203K limited to single family residences?
- No. The program can be used for owner occupied 1-4 unit dwellings and condos.
How does the renovation company or contractor get paid?
- The contractor gets paid through Brayden Capital's escrow department. They are allowed 2 to 5 draws depending on the cost of the rehab.
What type of out-of-pocket expenses should the buyer be prepared to pay?
- There is a home inspection or an FHA consultant fee to determine the scope of the work. The cost varies from $300 to $1,000. [based on my experience, it is usually under $500]
How long does it take to close and receive the first draw?
- We need 30 days to close and it will take up to one to two weeks after closing to receive the first draw
If you are thinking of purchasing an Atlanta home that needs a few renovations and/or repairs, please contact Brayden Capital Home Loans or you can call me at 404.432.1844 for a few loan officer recommendations!
Thank you for visiting by our Atlanta Real Estate Blog!
Posted by: Kerry Lucasse - Atlanta GA Real Estate Agent - Atlanta Home Search Team
The ATL Home Search Team is part of Keller Williams Realty, specializing in the Intown Atlanta neighborhoods including Decatur, Oakhurst, East Lake, and Grant Park / Ormewood Park.
CALL ANYTIME AT 404.432.1844
Call anytime @ 404.432.1844
In & Around Atlanta Real Estate Blog - Copyright 2006 - 2014 by Kerry Lucasse and the Nest Atlanta team with eXp Realty Atlanta. All information contained in this blog is deemed to be reliable but not guaranteed. If you need assistance with Intown Atlanta real estate, Kerry Lucasse and the Nest Atlanta Real Estate Group are always available to assist you with your residential real estate needs!
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